Reality TV star, model, and entrepreneur Kim Kardashian was recently fined a sum of $1.26 million for allegedly promoting EthereumMax, failing to notify the promotion, and receiving $250,000 for the same.
Celebrity endorsements are customary in business marketing. Brands and businesses use celebrities, and popular and influential figures to help raise awareness and promote products and services.
In turn, these celebrities get paid their respective charges, and then more often than not, the product or service is entirely forgotten. Another catch with celebrity endorsements is that it is likely that the celebrities themselves are not aware of the type or nature of the product or service they endorse.
Kim Kardashian promoted the cryptocurrency EthereumMax, received payment for the same and failed to notify. Consequently, the US Security and Exchange Commission (SEC) charged and fined her for misleading promotional activities. A promotion like this was meant to artificially inflate cryptocurrency’s price for a brief period before it crashes. This technique is commonly referred to as a Pump and Dump scheme. The ‘Pump and Dump’ is also often called a scam as it misleads investors into buying a cryptocurrency after primarily purchasing it for a lesser price.
The SEC charged Kardashian, and the former’s legal representative added:
Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter…
Nonetheless, the incident raised several questions about the ethics of such schemes and how the false promotion can adversely affect potential investors, etc.
Hence, Real Research launched a survey on Kim Kardashian charged over cryptocurrency promotion. Answer now on the Real Research app from October 06, 2022. After that, you will receive 30 TNCs as a reward.
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